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Business News/ Politics / Policy/  AAP keeps Delhi poll promise on power tariff, free water
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AAP keeps Delhi poll promise on power tariff, free water

50% subsidy on monthly power consumption of up to 400 units, 20,000 litres of free water a month to all households

The free water scheme and power subsidy will come into effect from 1 March. Photo: Ramesh Pathania/MintPremium
The free water scheme and power subsidy will come into effect from 1 March. Photo: Ramesh Pathania/Mint

New Delhi: Fulfilling two major poll promises, the Aam Aadmi Party (AAP) government on Wednesday announced a 50% subsidy on monthly power consumption of up to 400 units and 20,000 litres of free water per month to all households that would cost the exchequer around 1,670 crore annually.

The free water scheme and power subsidy will come into effect from 1 March.

The decision on both the schemes was taken at a cabinet meeting presided over by chief minister Arvind Kejriwal.

“We delivered on our promises on slashing power tariff by half and giving free water. We will also fulfil other promises," Kejriwal said. Deputy chief minister Manish Sisodia, addressing a press conference, said all the consumers whose monthly power consumption do not exceed 400 units will get 50% subsidy in tariff and the scheme will benefit around 3.6 million or 90% of the consumers.

However, the rider is that if consumption crosses 400 units, then full charges from zero base will have to be paid.

Earlier, the chief minister had met Comptroller and Auditor General (CAG) of India Shashi Kant Sharma and discussed the status of scrutiny of finances of the private power distribution companies by the auditor which was ordered by the AAP government in its first stint.

Sisodia said the subsidy scheme will be reviewed after the CAG submits its report on the finances of the discoms.

On the water scheme, Sisodia said 20,000 litres of free water will be supplied to all households having functional water metres and the decision will benefit around 1.8 million families. However, if the monthly consumption exceeds 20,000 litre, charges for the entire supply of water will have to be paid.

Both 5the 0% subsidy and free-water schemes were launched during the AAP’s first government but were discontinued after it quit on 14 February last year. The deputy chief minister said the free water is being extended to group housing societies as well and all the consumers under the scheme will not require to pay any other charges including the sewerage charge.

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Published: 25 Feb 2015, 04:27 PM IST
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